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HomeMy WebLinkAboutOrdinance No. 2011-1903 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2011-1903 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ESTABLISHING A SINKING FUND FOR THE FUNDING OF THE CITY MANAGER'S MAY 3, 2011, FIRST AMENDED EMPLOYMENT AGREEMENT; PROVIDING FOR THE LEVYING AND COLLECTION OF A SUFFICIENT TAX TO PAY THE INTEREST ON SUCH OBLIGATION; PLEDGING SUCH FOR THE PAYMENT OF SAID AMOUNT; CONTAINING OTHER INCIDENTAL AND RELATED MATTERS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of The Colony, Texas (hereinafter referred to as the "City"), desires to retain the services of Troy C. Powell (hereinafter referred to as the "Mr. Powell") as City Manager for the City, subject to the provisions of state law, the City's Home-Rule Charter, and the City's Code of Ordinances; and WHEREAS, it also is the desire of the City Council of the City of The Colony, Texas, to provide certain benefits and to establish certain conditions of employment for Mr. Powell; and WHEREAS, on or about April 10, 2010, the City entered into an Employment Agreement with Mr. Powell relative to his services as City Manager; and WHEREAS, the City entered into a First Amended Employment Agreement ("First Amended Agreement"), with an effective date of May 3, 2011, with Mr. Powell as a consequence of the superior services he has provided as City Manager; and WHEREAS, the term of that First Amended Agreement extends beyond the present (2010- 2011) fiscal year, and terminates during the 2013-2014 fiscal year, on September 30, 2014; and WHEREAS, Mr. Powell and the City acknowledge that, pursuant to the provisions contained in Article X1, Sections 5 and 7 of the Texas Constitution, the City may not enter into unfunded debt, i.e., debt beyond the current fiscal year, for any purpose without creating a sinking fund of at least two percent (2%) of the amount of such debt for the payment of said debt; and WHEREAS, Mr. Powell and the City further acknowledge at the time long-term debt is created, the City must provide for the assessment and collection on an annual basis of a sufficient sum of money for payments accruing during any subsequent budget year. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. All the above premises are hereby found to be true and correct and are hereby approved and incorporated into the body of this Ordinance as if copied in their entirety. SECTION 2. From and after the effective date of this Ordinance, the City's Chief Financial Officer is hereby directed to create and maintain, through September 30, 2014, unless said First Amended Agreement is terminated pursuant to its terms before such date, a Sinking Fund for the payment of the debt created by such First Amended Agreement. The Sinking Fund shall consist of two percent (2%) of the gross base salary due, and owing Mr. Powell through September 30, 2014, as reflected in Section B of the First Amended Agreement. SECTION 3. The proceeds placed into the Sinking Fund, for the current fiscal year (2010- 2011) and succeeding fiscal years shall be from the City's ad valorem tax, and there shall be annually assessed and collected in due time, form and manner, a direct and continuing ad y'alorem tax on all taxable property within the corporate limits of the City at a rate from year to year, within the limitations prescribed by law, on each one hundred dollars' valuation of taxable property as will be sufficient to provide fiends to satisfy any obligations under the First Amended Agreement during any budget year. SECTION 4. The City's Chief Financial Officer shall keep and maintain all records relating to the Sinking Fund and all such other related documentation and accounts, and is hereby authorized and instructed to maintain all fiends necessary in the Sinking Fund to prevent the creation, at any time, of an unconstitutional debt in the terms, conditions, or administration of the First Amended Agreement. SECTION 5. All ordinances, orders or resolutions heretofore passed and adopted by the City Council of the City of The Colony, Texas, are hereby repealed to the extent that said ordinances, orders or resolutions, or parts thereof, are in conflict herewith. SECTION 6. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, and further declares that such remaining portions shall remain in full force and effect. SECTION 7. This Ordinance shall take effect and be in full force from and after its passage, as provided by state statute and the Code of Ordinances of the City of The Colony, Texas. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 312" day of MAY , 2011. Joe McCourry, Mayor` i ATTEST: fr I~hristie Wilson, City Secretary APPROVED AS TO FORM: f ff Moo ;e, ity Attorney i I!